Midwest Company

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.


Midwest Company is based in United States and it is a major supplier of educational materials to the United States, and the company is providing books, manuals, videos, software and hardware used in the field of technology. The company's main objective criteria is determined its focus is on cost reduction, quality enhancement and innovation. The headquarters is located in the Kansas City and the total number of staff employed is 416. In the Human Resource department there are 4 sections and they are 1) Staffing 2) Compensation & Benefits Section 3) Labour Management Relations section 4) Training, Career Development & Performance Appraisal section and also there can be found HR specialists in each of the three divisions around the country. The company is looking forward into investing a large sum of capital in Educational Training Aids (ETA).

1) Can Midwest education be selective in who it offers relocation benefits to?

Companies which are running in the modern business and economic environment tend to come up with different strategies which might be beneficial to the company than the other rival competitors. So it can be more identifiable and unique in the business context where the final ultimate objective is to make profits. Employment growth is a major goal of a state economic policy. Changes in employment are driven by continuous job creation and job destruction, which in turn are the result of six dynamic processes including the birth, death, growth, contraction, and in-migration and out-migration of business establishments. The engagement of Midwest education company in a long-term ongoing project to study the job creation-destruction processes in California with an emphasis on quantifying and better understanding the contribution of each of these business establishment dynamics to employment changes in the state, at the aggregate state level as well as inter-regionally. (Neumark et al., 2005),

We can argue that in thinking about interstate business relocation, one should not focus exclusively on business leaving Kansas City and ignore those that move into California. In addition, one should examine the effect of business relocation in a broader context that incorporates other types of business dynamics that influence employment growth in the state, including the formation of new business establishments and the expansion, contraction, and closure of existing establishments. To the extent that there is a role for public policy to encourage employment growth, it should focus on the processes of employment change that have the greatest potential to encourage employment growth.

First, it is generally expected that business establishments in some industries are more mobile than in other industries; for example, businesses that produce or sell tradable goods may find it much easier to relocate outside a state from California or Missouri and at the same time to maintain their customer base inside the state. Indeed, based on a survey of corporate executives, a recent study by the California Business Roundtable and Bain & Company (2004) emphasized that California's high-value mobile jobs are most likely to move to other states. If this is the case, then the previous conclusion about the effects of business relocation at the aggregate level may understate the significance of relocation for certain industries because some organisations are averaging over industries where relocation is a viable strategy and industries where it is not. Thus, it is particularly important to explore how serious interstate relocation is in the more mobile industries.

Primary strategy-making concerns include:

(Porter, M.E., (1985), Competitive Advantage (New York: Free Press)).

o Ensuring the company is planning for the future.

o Building and managing a high-performing portfolio of business units (making acquisitions, strengthening existing business positions, divesting businesses that no longer fit into management's plans, entering into joint ventures and other strategic alliances).

o Capturing the synergy among related business units and turning it into competitive advantage.

o Establishing investment priorities and steering corporate resources into businesses with the most attractive opportunities.

o Reviewing/revising/unifying the major strategic approaches and moves proposed by business-unit managers.

'Business strategy' concerns the actions and the approaches crafted by management to produce successful performance in one specific line of business: the central business strategy issue is how to build a stronger long-term competitive position.

Primary strategy-making concerns at the business level include:

o Interpreting changing market conditions.

o Devising moves and approaches to compete successfully and to secure a competitive advantage.

o Selecting competitive strategies.

o Forming responses to changing external conditions.

o Uniting the strategic initiatives of key functional departments.

The total number of jobs moving out of and into California in each year during 1992-2002, has a significant impact on to the productivity of the work force and the expected results which is due from the employees. In other words, one has to consider all jobs as the same. This is potentially inadequate because if the jobs created by in-migration differ from the jobs lost due to out-migration, relocation could change the composition of jobs; if, on net, relocation costs more high-quality jobs, then a simple focus on the number of jobs affected by relocation my understate the problem. We focus on one particular dimension of job quality and variation in pay by asking whether relocation tends to cost California higher-paying jobs. This is not the only dimension of job quality. Others include employment security, benefits, job safety, satisfaction, status, and working conditions. However, pay has the advantage that it is easy to measure, is clearly important to workers, and is also of great interest to state policymakers because it directly influences the tax base as well as the average economic well-being of workers. The salary can be varying across occupations, skills, and institutions (such as unionization). Here, though, we focus on differences by industry, because in the NETS (National Establishment Time Series) data detailed industry classifications of business establishments. Average earnings in different industries in California vary considerably. In 2003, average annual pay was about $74,000 in finance and insurance and $54,000 in manufacturing. In contrast, in retail, average pay was only $28,000. Thus, if a manufacturing job leaves the state and a retail job comes to the state, they might not want to view these as offsetting because on average a high-paying job has been replaced by a low-paying job.

(Jackson, S. E., and Schuler, R. S. (1990). Human Resource Planning: Challenges for I/O Psychologists, American Psychologist: 223-239.)


When we discuss about the organisational examples like Toyota where the company established in Tokyo, Japan operates in more than 140 countries around the globe is providing more or less the same service which the customer is expecting to be served as. So the Toyota manufacturing in UK, or Tokyo or Poland or in South America is determined to manufacture the quality products according to the customer tastes in different parts of the world. Apple is a company where established in California, United States and has a wide distribution channel across the Europe, Asia, Africa, Australia and South-America so the customer knows by the product where it's i-phones, i-pods, lap-tops, and Mac-books, so the relocation plays a critical role in order to reach the product to the customer. Laureal-Paris is a perfume manufacturing company where it's known to its best beauty products established in Paris, France. So the relocation of the industry around the globe in London, New-York, Tokyo, Cairo, or Delhi is extremely important to its excessive sales criteria and the strategy is concern.

One has to identify that by re-locating a business organisation it will create new job opportunities and job roles to the jobless people around the world. Also improving the training & development and career improvement criteria is also critical to upgrade a work force's abilities, skills, knowledge and motivation which might be essential to a business organisation.

2) Are the employees of ETA who merged with the creative development division guaranteed positions at Midwest Education, or should they be treated as a pool of applicants?

The creative development division compromises of 90 employees in California plant and 38 in Massachusetts plant combining the total number to 128, and this department follows a strategy of innovation. On the other hand ETA (Education Training Aids) is going to be purchase by the company as an investment strategy and the 2 departments have different individual goals and strategies. So the employees who were already employed by the departments needs to be given a induction programme and training & development sessions and also the on the job training where they should be treated as pool of applicants because the job tasks which they have to undertake can be distinguished to the work which they already undertook, so it is essential to guide them to a proper recruitment process where they are suitable or not, and planning, recruitment & selection, training & development, performance appraisal, and induction and so on has to be identified and implement accurately.

HR policies and practices should be chosen to support the implementation of strategic business plans. In the context of the Four-task Model, HR policies and practices drive the actions required to fulfill the needs of the firm as specified by theses plans and the strategic business issues and objectives associated with them. It is the linkage of HR policies and practices to the firm's strategic business objectives and plans that defines strategic human resource management and differentiates it from the older practice of personnel management (Schuler, 1992). The major categories of HR policies and practices include:

* HR Planning

* Job Analysis

* Job Description

* Recruitment and Selection

* Job Design

* Job Rotation

* Job Enlargement

* Job Enrichment

* Reward System

* Appraisals / Performance Management

* Training and Development

* Compensation

* Health and safety

* Transfer / Redundancy

* Dismissal / Disciplinary code

* Union-management relationships

* Organizational change and design.

To be used effectively, the specific content of each of these policies and practices should be designed to address the four tasks of human resource management. The systematic consideration of the role each plays in achieving the four HR tasks ensures that policies and practices in all areas are both integrated with each other and linked with the firm's strategic business objectives and plans, in the context of the firm's vision, mission, values and general strategy.( Schuler, R.S. and Jackson, S.E. (1997), "Linking Competitive Strategies with Human Resource Management Practices," Academy of Management Executive: 207-219.)

The primary responsibilities of the human resource function constitute the core of the Four-Task Model of Human Resource Management. Stated more succinctly, the four main tasks of HR are:

* Managing Employee Assignments and Opportunities

* Managing Employee Competencies

* Managing Employee Behaviours

* Managing Employee Motivation

Effective in this task are:

* What number and type of employees are needed, with what qualifications?

* Where are they needed, and when?

* Where will they come from?

* What opportunities for growth, development, and rewards will attract them to the organization?

Managing Employee Competencies. The second effective method of the 4 tasks model describe as the individual employee's skills, abilities, knowledge and the attitudes which may leads to determine the core competencies factors to lead the organisation to a commanding position and the innovative improvement of the individual employee's performance criteria in order to perform well in the position is needs to be considered. Anticipating & Planning for the future jobs and forecasts which can be occurred in the latter stages is also a crucial dimension in addressing the appropriate techniques and methods to follow.

* What competencies do employees have now?

* What new competencies will be needed in the future?

* What competencies will be less important in the future?

* Which specific employees need which specific competencies?

* Can/should needed competencies be purchased or developed?

(Purcell, J (1995), Corporate Strategy and the Link with Human Resource Management', in Storey, J (5th Ed) Human Resource Management: A Critical Text (London: Routledge).

Managing Employee Motivation.

There are three areas of interest when considering employee motivation:

1. The willingness to perform (effort). The involvement or the participant in the job is another key element in the context. Business Succession planning, career planning & career development is also part of the performances of on the job and off the job training or effort by the individual surrounded with motivation. The desire, ambition or goal oriented to overcome a situation is what is meant by willingness to perform. Some individuals may fancy of the salary, good working condition, position, or bonuses and some may not.

2. The willingness to work at the agreed upon time and place (reliability). Anticipated level of absenteeism and the work on time and completing the work to the given deadlines and accuracy of the work and the effectiveness is essential in subscribing the willingness criteria. The reliability of the employee in the working environment and supporting to the employer or the supervisor by completing the work Thus, ensuring that employees meet the firm's motivational needs involves answering questions such as:

* How much more effort are employees willing and able to give?

* What is the optimal length of time for employees to stay with the firm?

* Can production costs or customer service be improved by reducing absence and tardiness?


Sony & Ericsson companies did merged together to reproduce a new mobile phone called Sony Ericsson and the business was successful in providing better customer satisfactory product in the demand. As Gary Hattem of Deutsche Bank (which merged with Bankers Trust of New York in June 1999) put it, both companies wanted to ‘make sure they did it right' and finally managed to overcome the business goals and objectives. In January 2001, just after the merger of Glaxo Wellcome and SmithKline Beecham (SB) was formally approved, GlaxoSmithKline (GSK) wrote to its partners reassuring them of its intention to honour its existing commitments. Hewlett Packard (HP) made a similar undertaking on its 2002 merger with Compaq and they did able to sell laptops under the brand name successfully. According to Skip Rhodes at ChevronTexaco, the heritage companies, Chevron and Texaco, reviewed all their grants to consider whether they were ‘aligned with our newly merged company, and also would continue to meet the needs of the community'. The scale of this task can be judged by the fact that the two companies combined operated in 180 countries. Chrysler by Daimler-Benz in 1999 which was widely referred to in the time, where the U.S. Company merged with a German company. But now the company is struggling in the economic recession.

3) Which of the three approaches should Midwest education use to select which manufacturing employees to keep? Is there a better method?

The main manufacturing plant is located in Kansas City and Mr. Max Thorn is the president of this division. This department consists of 158 employees and the starting salary is from $6.25 per hour. Most of the time rather than acquiring new employees to the organisation it is always ideal to participate the existing employees to training & development programmes, and make use of them effectively and efficiently. Recruitment of new employees to a new job vacancy will cost 20% of the employee's salary to the organisation and training the current employees will always results in less expensive to the organisation. There are 3 main approaches which they can capitalize on selecting the appropriate employees to keep in the organisation.

1. Aged over 50 can be given a mandatory leave from the organisation with fully paid pension.

2. Employees who are already in the manufacturing department who is recently recruited has to be retained in their positions.

3. Deploy the employees who have duplication of work in the organisation.

Other than these 3 main criteria's there are other methods to select the appropriate candidate to the vacancy.

1. Application Forms

2. References

3. Interviews

So these main approaches can be come up with to give a better understanding to the terminology of the above mentioned methods. By going through the application forms and validating it's individual qualifications and skills is always a good criteria of measuring the performances and capabilities and the working experience where the candidate has gone through in the past will enable to substantiate his/her position in the organisation. By conducting appropriate interviews the organisation would be able to find the appropriate candidate which they are looking for the vacancy.

Personality Questionnaires
General Mental Ability and Aptitude Tests
Bio data Inventories
Work Sample Tests
Peer Assessments
Assessment Centres

The above methods are the main approaches when assessing the employees. Companies whose managers set objectives for each key strategic issue and then aggressively pursue actions calculated to achieve their performance targets typically outperform companies whose managers have good intentions, try hard, and hope for success (Brews & Hunt, 1999). This relationship was captured in the observation that "You cannot manage what you cannot measure; and what gets measured gets done" (Bill Hewlett, Co-founder Hewlett-Packard). Typically strategic business objectives are the part of the strategic plan most often spelled out explicitly and communicated to managers and non-managers.

The following elements are the key areas which an organisation should be focusing on to gain competitive advantage in the business context by maintaining the staff of the organisation

Business Competencies

* Industry knowledge

* Competitor understanding

* Financial understanding

* Global perspective/knowledge

* Strategic analysis

* Partner orientation

* Multiple stakeholder sensitivity

Leadership Competencies

* Strategic visioning

* Managing cultural diversity

* Creator of learning culture

* Planning and decision making skills

* Value shaper

Change and Knowledge Management Competencies

* Network building

* Designing and working in flexible structures

* HR Alignment

* Managing learning and knowledge transfer

* Consulting / Influencing

* Group / Process Facilitation

* Organization Development / Effectiveness

* Managing Large Scale Change

Professional / Technical Competencies

* Staffing

* Performance Management

* Education / Development

* Remuneration / Reward Systems

* Employee Relations

* Employee Communications

* Succession Planning

* Union Relations

* Safety / Health / Wellness

(Rucci, Kirn and Quinn, 1998).

Identifying strategic business issues and setting strategic business objectives involves deciding upon what is most important for the company to focus on consistent with the corporate vision, mission and general strategy. For example, at American Express, the general strategy of providing quality products supported by superior customer service surfaces strategic issues such as the need to:

* Become more globally competent

* Grow through successful acquisitions

* Become more innovative

* Enhance our customer focus and solutions orientation

And by 2020 the company is targeting to increase it's sales volume by 20% and increase the market share by 15%. Strategic business criteria is determined the lights of recognition the business in worldwide and the acquisition of new customers to the particular product is important. KPMG is an organisation which is highly focusing on the skills, and qualifications of the applicants out of the pool of applicants applying for the post, and it is essential to conduct face-to face interviews and selection tests to select the appropriate candidates for the vacancy.

4) Which de-cruitment method is best for a ‘‘quality'' strategy?

Organizations are increasingly becoming focused on being competitive on a national and global level. The importance of the recruitment and selection process is vital for organizational competitiveness and a failure to approach this function effectively will have consequences for future job performance. Numerous authors have emphasised the importance of integrating the recruitment and selection processes into organizational strategies and HR systems as well as the necessity to respond to changes in the organization's environment (Stone, 2002, p.174, Nankervis, Compton & McCarthy, 1999, p.190, Compton, Morrissey & Nankervis, 2002, pp.16-17).

The terminology of de-cruitment refers to redundancy or the deployment of an employee from a current position of an organisation, so reasons for de-cruitment can be vary due to the organisation's objectives and the planning is concern, because it is important to identify the capacity level of employment of an organisation and the demand & supply of the manpower to the organisation. Quality has been defined by Ken Holmes as ‘the totality of features and characteristics of a product or service which bears on its ability to meet stated or implied needs'. (Juran 1998) describes as ‘fitness for use'. It implies some degree of excellence or superiority and might be associated with a product that is seen as the best available amongst all the products of a similar type, such as a Rolls Royce car or a Ferrari sports car.

Combining a vision, mission and statement of general strategy with strategic issues and objectives and a general strategy constitutes the essentials of a strategic plan. Typically, a good strategic plan is based on an analysis of the economy and industry in which the firm competes. It identifies sources of competitive advantage and the success factors that are critical to long-term effectiveness (Porter, 1985). It analyzes the existing and potential competition, assesses company strengths, weaknesses, and core competencies. All of these are used as the basis for developing specific plans of actions intended to ensure the firm achieves its strategic objectives.

In the modern day business organisations tend to use different methods of de-cruitment methods to fire, deploy or get rid of the existing employees of an organisation. Companies like RBS - The Royal Bank of Scotland, Make it happen Logomade huge losses as $53bn in 2008 and as a result it had to cut down it's staff of 3000 to 4000 and http://chap11.epiqsystems.com/images/logos/Lehman.jpg in 2008 was bankrupted in 2008 August and all the employees who worked in the organisation without giving any notice or service letters or pension schemes just dismissed the entire staff from the organisation amounted to more than 5000 in New York and another 10000 around the world. http://upload.wikimedia.org/wikipedia/en/thumb/f/f5/HBOS.svg/200px-HBOS.svg.png is an organisation which axed more than 72000 employees when it merged with Lloyds TSB in 2008 had faced a lot of difficulties to face trade union rights and employee rights are concern it is not always the right thing to dismiss the employees of an organisation instantly. Woolworths.co.uk - Full of Toys, Entertainment, Kids Clothing, Party Ideas & Pic n' Mix which employed more than 27000 employees who were employed in more than 819 branches across the country in 2008 and completely shut down it's operations due to the world economic recession.


In this critical text analysis described by the case study of Midwest education is a company based in the United States and operating in educational materials. The main objectives or the strategies are Cost reduction, Quality enhancement and Innovation. There are 4 major departments within the organisation and they are 1) Staffing 2) Compensation & Benefits Section 3) Labour Management Relations section 4) Training, Career Development & Performance Appraisal section. The organisation is going to relocate from it's current position and the headquarters located in the Kansas city is developing a strategy to merge with the creative development division of the organisation and the ETA (Education Training Aids) so when a merger is taking place needs to consider which employees of the organisation to keep and who needs to be deployed.

The de-cruitment strategy to be used when it comes in to consideration of the quality approach to be used has to be identified according to the situation. So overall the decision making of the management perspective of view and employees perspective of view is critical and also the business strategy, mission, vision, goals and objectives needs to be analyse in the Midwest company's destination is concern.



1.) Kumar N. & Mittal R. (2001) Office Organisation and Management 1st Ed ; Anmol Publications

2.) Parkin M. (2009) The Employer's guide to Grievance & Discipline Procedures Kogan Page Ltd.

3.) Rucci, A.J., Kirn, S.P., and Quinn, R.T. (1998) The Employee-Customer-Profit Chain at Sears Harvard Business Review: 83-97.

4.) Purcell, J (1989) The Impact of Corporate Strategy on Human Resource Management (4th Ed) New Perspectives on Human Resource Management (London: Routledge).

5.) Schuler, R. S. (2000). Human Resource Management Activities in International Joint Ventures 5th Ed. A Critical Text (London: International Thomson).

6.) Schuler, R.S. and Jackson, S.E. (1999), Strategic Human Resource Management: A Reader (London: Blackwell) 132-140.

7.) Schuler, R.S. and Jackson, S.E. (1997) Linking Competitive Strategies with Human Resource Management Practices Academy of Management Executive: 207-219.

8.) Schuler, R.S. and MacMillan, I.C. (1984) Gaining Competitive Advantage Through Human Resource Management Practices, Human Resource Management 23 (3): 241-255.

9.) Storey. J (1992) The Management of Human Resources, (Oxford: Blackwell). 234-242

10.) Becker, B.E. and Huselid, M.A., (1998), High Performance Work System and Firm Performance: a Synthesis of Research and Managerial Implications, (3rd Ed.), Research in Personnel and Human Resource Management (Greenwich, Conn.: JAI Press


1.) Brews, P. J. and Hunt, M. R. (1999), Learning to Plan and Planning to Learn: Resolving the Planning School/Learning School Debate, Strategic Management Journal 20:889-913.

2.) Huselid, M.A., Jackson, S.E., and Schuler, R.S. (1997), "Technical and Strategic Human Resource Management Effectiveness as Determinants of Firm Performance," Academy of Management Journal 40: 171-188.

3.) Marquardt, E.P., (1997), Aligning Strategy and Performance with the Balances Scorecard ACA Journal: 18-27.

4.) Jackson, S. E., and Schuler, R. S. (1995). Understanding Human Resource Management in the Context of Organizations and their Environments, Annual Review of Psychology 46: 237-264

5.) Gratton, L. (1999), Human Resource Strategy (London: Oxford University Press) Living Strategy: Putting People at the Centre of Corporate Strategy (London: FT Prentice Hall).

6.) Kaplan, R.S. and Norton, D.P. (1996), Linking the Balanced Scorecard to Strategy," California Management Review 39: 53-79.

7.) Porter, M.E. (1985) Competitive Advantage (New York: Free Press).

8.) Purcell, J (1995) Corporate Strategy and the Link with Human Resource Management, Human Resource Management: A Critical Text (London: Routledge).